An Enthusiastic CEO Spoke to His Audience, "Our Employees Sold

question 69

True/False

An enthusiastic CEO spoke to his audience, "Our employees sold $10 million worth of services last year!" His wording is an example of how to use passive voice to present information.

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Definitions:

Costly Trade Credit

Credit taken in excess of free trade credit whose cost is equal to the discount lost.

Free Trade Credit

This describes the period during which a buyer can delay payment for goods or services received, without incurring any penalty or interest cost.

DSO

Days Sales Outstanding (DSO) is a financial metric that calculates the average time in days that a company takes to collect payment after a sale has been made, indicating the efficiency of the company's credit and collections policies.

CCC

Cash Conversion Cycle, a metric that shows the time span between a company's outlay of cash for materials and receiving payment from the sale of goods.